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The USPS Is Reviewing Its Amazon Package Delivery Fees Because of Trump
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The USPS Is Reviewing Its Amazon Package Delivery Fees Because of Trump


Illustration for article titled The USPS Is Reviewing Its Amazon Package Delivery Fees Because of Trump

Photo: Valerie Macon/AFP (Getty Images)

Almost a month after President Donald Trump threatened toblock a $10 billion emergency loanto the U.S. Postal Service except it raised shipping costs on companies care for Amazon, UPS, and FedEx, the USPS has determined to review its package delivery contracts, according to anonymous sources who spoke with theWashington Post. Trump has complained for a very prolonged time that he believes the USPS undercharges these companies to deliver on its behalf, and has consistently pushed the independent agency to charge them more—approximately “four instances” more than what it currently does.

“If they don’t raise the value I’m no longer signing anything, so they’ll raise the value so that they turn into maybe even profitable nonetheless so they lose powerful much less cash,” said Trump. Trump has blamed the USPS’ financial anxiety on no longer charging other retail and delivery companies ample to spend their products and services, even when the USPS is required to charge a certain amount.

The USPS has always fought back, saying it maintains the costs it does to stay competitive in the marketplace. Nonetheless with Deputy Postmaster General Ronald Stroman’s resignation, and finance chairman of the 2020 Republican National Convention, Louis DeJoy, dwelling to turn into the modern postmaster general on June 15, it appears the USPS has quietly broken down out of what seems care for desperation to stay afloat, especially during the modern pandemic, and fear that Trump may apply thru with these threats.

According to the Washington Post, over the last few weeks the USPS has been seeking bids from consulting firms to reexamine what the agency charges companies care for Amazon, UPS, and FedEx. Contracts are generally reviewed on a yearly basis, and analysts have repeatedly warned that all at as soon as raising package costs that drastically would cause more bad than lawful, no longer correct for the USPS or Amazon, nonetheless for small businesses and individuals too.

Additionally, Trump and Treasury Secretary Steven Mnuchin have been trying to attach several caveats to that emergency loan from April, which would grant the Trump administration financial oversight over package costs and bulk-carve charge contracts. It’s one step on a steep slope to the USPS losing its status as an independent agency.

Package shipments account for five percent of the USPS’ quantity, nonetheless 30 percent of its income. Since the pandemic has shuttered cities all over the nation, package quantity has increased by 70 percent. Then again, a deep tumble in personal and marketing mail has minimize income by a titanic amount, and the increase in package shipments has been unable to account for that loss. As of now, the USPS is on track to lose $13 billion by the tip of this year.

Attempting to circumvent Trump’s influence over the USPS, congressional Democrats have included funding for the independent agency in its $3 trillion Health and Financial Restoration Omnibus Emergency Solutions Act, or Heroes Act, which supplies $25 billion in aid to the USPS and prevents the Trump administration from being able to dictate package costs and contracts.

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